Economic theory simplifies relationships to explain how the relationships interact.

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Economic theory seeks to simplify complex relationships between economic variables to better understand how they interact with each other. This is often done through models and assumptions that make the relationships easier to study and analyze. However, it is important to note that these simplifications may not capture the full complexity of the real world and can sometimes lead to limitations in economic models.

Economic Theory Simplifies Relationships to Explain How the Relationships Interact